5% ISA lanched by Principality Building Society
Published: 1 April 2009 By MoneyhighStreet Staff 2 Comments
Principality Building Society has announced the launch of an ISA for the new tax year, a regular saver ISA paying a fixed 5%.
The new ISA launches on 6 April and is fixed at 5% for a year.
Between £20 and a maximum of £300 must be saved into the account each month.
Whilst the initial deposit can be made by cash or cheque, the monthly saving must be by standing order.
Current ISA rules are that people can save up to £3,600 in a cash ISA and up to £7,200 in a stocks and shares ISA.
The overall total ISA savings limit though is £7,200.
With the Principality account if the maximum amount isn’t saved each month then, if appropriate for the saver, the account can be topped up in March 2010 to ensure the full allowance is used.
The start of the new tax year on 6 April marks the 10th anniversary of the ISA.
There is invariably a rush by savers to use their ISA allowances right at the end of the tax year, no doubt as a result of seeing all the reminders to make use of this tax-efficient savings scheme.
However, by investing in a cash ISA from the start of the new tax year it would help savers make the most of their ISA cash.